RES-11046 Master Schedule of Fees and Water RatesRESOLUTION NO. 11046
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE AMENDING AND REVISING THE
MASTER SCHEDULE OF FEES AND CHARGES FOR
WATER RATES.
WHEREAS, on December 12, 2017, a hearing was held before the City Council to
consider the rates and charges assessed by the City in connection with provision of water service;
and
WHEREAS, by October 26, 2017, the notice required by the majority protest procedure
set forth in Article XIIID, Section 6 of the California Constitution was mailed to all owners of
record to announce the hearing date and proposed water rate adjustments; and
WHEREAS, the notice of the time and the place of the hearing was published in a
newspaper of general circulation on November 29 2017; and
WHEREAS, a water rate study was prepared by Raftelis Financial Consultants
Corporation, Inc., a consultant selected by the City because of its expertise in preparing water rate
studies on behalf of municipalities; and
WHEREAS, Government Code section 53756 authorizes the City to adopt a schedule of
fees or charges authorizing automatic adjustments that pass through increases in wholesale charges
for water and adjustments for inflation; and
WHEREAS, the written protests received do not constitute a majority of the property
owners of the identified parcels upon which the water rate will be charged; and
WHEREAS, the City Council has determined pursuant to Article XIIID, Section 6 and
Government Code Section 53756 that the proposed water rates do not exceed the estimated
reasonable cost of providing water service and that such water rates should be amended and
included in the City's Master Schedule of Fees and Charges.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Orange
does resolve as follows:
1. The Master Schedule of fees and Charges is hereby amended to include Attachment
A" (Water Rates).
2. The City Council finds that the rates and fees set forth in Attachment "A" do not
exceed the City's estimated reasonable costs of providing the respective goods,
facilities and services for which the rates and fees are charged.
The water rates and fees include multi -year rate adjustments effective January 1,
2018, January 1, 2019, January 1, 2020, January 1, 2021, and January 1, 2022.
4. The City Council finds that the formula set forth in Attachment "B" is in accordance
with Government Code Section 53756 and will calculate costs of providing the
respective goods, facilities and services for which the rates and fees are charged.
If any rates, fee, or charges set forth in this Resolution or the application thereof to
any person or circumstance is held to be unconstitutional or otherwise invalid by
any court of competent jurisdiction, such invalidity shall not affect any other rate,
fee, or charge, or application thereof, and to this end the rates, fees, and charges of
this Resolution are declared to be severable.
6. Prior to the implementation of any pass- through adjustments in water rates and fees
authorized by this Resolution, such pass - through adjustments shall be placed on the
City Council agenda as a report and file item under the Consent Calendar.
ADOPTED this 12th day of December 2017.
Te E. Smith, Mayor, City of Orange
ATTEST:
Mary E. ,City Clerk, City o Or
I, MARY E. MURPHY, City Clerk of the City of Orange, California, do hereby certify that
the foregoing Resolution was duly and regularly adopted by the City Council of the City of Orange
at a regular meeting thereof held on the 12th day of December 2017, by the following vote:
AYES:COUNCILMEMBERS:Alvarez, Whitaker, Smith, Murphy, Nichols
NOES:COUNCILMEMBERS:None
ABSENT:COUNCILMEMBERS:None
ABSTAIN:COUNCILMEMBERS:None
rZ
Mary E. ity Clerk, Cit ange
Resolution 11046
ATTACHMENT "A"
Proposed Water Service Rates
Revenue Adjustment
January 1, 2018 January 1, 2019 January 1, 2020 January 1, 2021 January 1, 2022
9% 7% 5% 5% 5%
Sevice Capacity Charges - a fixed 2 -month charge based on service size
Service Size (inchl
Tiers
Current
Current Rate
Ne`T[ rs
January 1, 2018 January 1, 2019 January 1, 2020 January 1, 2021 January 1, 2022
3/4
Tier 1
26.60
1.34
25.87 27.68 29.07 30.52 32.05
1
Tier 2
38.13
2.23
39.53 42.29 44.41 46.63 48.96
11/2
Tier 3
66.87
2.40
73.66 78.82 82.76 86.90 91.24
2 101.40 114.63 122.65 128.78 135.22 141.98
3
Mufti - Family *
193.53
Current Rate
210.21 224.92 236.17 247.98 260.38
4
Tier 1
297.16
1.34
346.76 371.03 389.58 409.06 429.51
6
Tier 2
584.98
2.23
688.12 736.29 773.11 811.76 852.35
8
Tier 3
930.41
2.40
1,643.95 1,759.03 1,846.98 1,939.33 2,036.29
10 2,196.89 2,599.78 2,781.76 2,920.85 3,066.89 3,220.23
Fire Service Charges -a fixed fee for customers with private fire service connections
Service Size (inch)
Tiers
Current
Current Rate
Ne`T[ rs
January 1, 2018 January 1, 2019 January 1, 2020 January 1, 2021 January 1, 2022
4
Tier 1
77.55
1.34
33.08 35.39 37.16 39.02 40.97
6
Tier 2
116.41
2.23
96.08 102.80 107.94 113.34 119.01
8
Tier 3
155.06
2.40
204.75 219.08 230.03 241.53 253.61
10 193.72 368.20 393.98 413.68 434.36 456.08
Voiumertric Rates -water consumption charge based on units of one- hundred cubic feet (748 gallons)
single Family & Condo Tiers
Current
Current Rate Ne`T[ rs January 1, 2018 January 1, 2019 January 1, 2020 January 1, 2021 January 1, 2022
Zone 4
Tier 1 0-20 1.34 0-23 2.16 2.31 2.43 2.55 2.67
Tier 2 21 -70 2.23 24-42 2.22 2.37 2.49 2.62 2.75
Tier 3 70 2.40 42 2.30 2.46 2.59 2.72 2.85
Mufti - Family *
Current
Current Rate
NewT rsl
January 1, 2018 January 1, 2019 January 1, 2020 January 1, 2021 January 1, 2022
Tier 1 0-12 1.34 0 -15 2.16 2.31 2.42 2.54 2.67
Tier 2 13 -20 2.23 16 -19 2.19 2.34 2.46 2.58 2.71
Tier 3 20 2.40 19 2.23 2.38 2.50 2.63 2.76
Curren"
Tiers (hcf)
Current Rate
New Tiers
hcf)January 1, 2018 January 1, 2019 January 1, 2020 January 1, 2021 January 1, 2022
Agriculture Same as above Fixed 2.20 2.36 2.47 2.60 2.73
Commercial Same as above Fixed 2.21 2.37 2.49 2.61 2.74
Construction Service 2.54 Fixed 2.05 2.19 2.30 2.42 2.54
Elevation Pumping Charge -water pumping costs in higher elevations based on units of one - hundred cubic feet (748 gallons)
Current Rate January 1, 2018 January 1, 2019 January 1, 2020 January 1, 2021 January 1, 2022
Zone 4 0.21 0.211$0.22 0.24 0.25 0.26
Zone 5 Is 0.47 1 Is 0.55 0.58 0.611$0.64 0.68
Multi - Family Residential (MFR) customers are designated by the City. MFR is defined as multiple dwelling units served by a single service connection. The MFR rate
sturcture shall be based on the number of units associated with the service. For example: A 5 -unit MFR property, with one service, consuming 200 hcf in a single
billing cycle will have a breakdown as follows:
75 hcf at the tier 1 rate
20 hcf at the tier 2 rate
75 hcf at the tier 3 rate
Attachment "B"
Proposed Pass - Through Formula
Because a significant portion of the City's water rates are heavily influenced by costs assessed
against the City by outside agencies, it is recommended that a pass - through charge be included to
account for these agency's unanticipated future increases or decreases. Otherwise, the City may
not be able to generate the funds required to maintain and operate the City's water system and to
comply with regulations imposed by State and Federal agencies.
Government Code Section 53756 authorizes agencies to adopt a schedule of fees or charges
authorizing automatic adjustments that pass - through increases in wholesale charges for water and
adjustments for inflation, for a period of five years. The amount of automatic adjustments (pass -
through charges) to account for changes in wholesale water costs will be based directly on the
incremental difference in costs that the City will incur from these other agencies as a result of
increases or decreases in the amount such agencies charge the City. Any such adjustments will
only be made to the extent such increases or decreases are not already reflected in the schedule of
charges then in effect. The specific outside agencies are:
Orange County Water District (OCWD)
Metropolitan Water District of Southern California (MWD) through its regional water
wholesaler, the Municipal Water District of Orange County (MWDOC).
Data documenting the amount of the increase or decrease in water commodity costs and the basis
for all adjustment calculations will be made available to the public upon request at the time of any
automatic adjustment. The pass - through cost applies only to the volumetric usage charge
component of the water used and will be assessed on all hcf s used by a customer. A notice of at
least 30 days will be provided to customers before any such adjustments will take effect. The
formula for which the automatic pass - through charge is calculated is as follows:
Pass — through rate I =
Proposed FY Water Purchase Costs — Baseline FY Water Purchase Cos
hcf (Calendar Year Water Use)
The pass - through cost applies only to the commodity component of the water used and will be
assessed on all hcf s used by a customer.